Al-Kazemi’s first comment after parliament voted to complete the cabinet

Tweet for the Prime Minister

Completing the ministerial cabinet with the House of Representatives voting on the names we presented is an additional motive for implementing the ministerial curriculum, fulfilling the stage entitlements and abiding by our promises before our people who await actions, not words.

I thank the House of Representatives for renewing confidence in the government, a new line of action that we cut firmly and consistently.

www.TheDinarExchange.com

Al-Ansari’s candidacy as a substitute for Al-Amiri, who submitted a formal request to resign from Parliament

Baghdad today – A source inside the parliament said, on Saturday (06 June 2020), that the head of the Al-Fateh coalition, Representative Hadi al-Amiri, has submitted his resignation to the Iraqi parliament.

The source said in an interview with (Baghdad Today), that “the head of the Al-Fateh Alliance Hadi al-Amiri submitted an official request to resign from the Iraqi parliament,” without revealing the reasons.

He added, “The person who will be a substitute for Al-Amiri in the membership of the Iraqi parliament is Abdul Karim Younis Al-Ansari.”

After Coming Under Heavy Criticism … The Central Bank Stops The Currency Auction

An informed source confirmed that the Central Bank of Iraq management has finally decided to stop the auction of foreign currencies after the Iraqi economy was subjected to severe setbacks due to the Corona pandemic and the drop in oil prices to record levels, and the Central Bank followed a failed monetary policy.

The source, who spoke on condition of anonymity, said to Al-Mustaqila that the central bank governor has been subjected to great pressure in the past few days by many political blocs, the media and economists because of his unjustified insistence to proceed with the foreign currency auction window despite all the losses and risks incurred by the economy Iraqi.

The data published on the website of the Central Bank indicates that the last date for which a currency auction was held was on Thursday, 21/5/2020, when more than $ 180 million was purchased with the participation of more than 30 banks at the auction.

Reduce the Iraqi dinar exchange rate … punish people!!

Iraq is going through extremely sensitive conditions, as the Iraqi economy faces a real challenge after the catastrophic failure to find alternatives to selling crude oil. I confirm here the sale of crude oil and not the oil refining industry and the petrochemical industry.

Iraq is one of the largest oil reserves in the world, as it has 147.2 billion Barrel according to explorations in 2018, or 8.5% of the balance’s global reserves – – and yet he annually imports 3.3 trillion Iraqi dinars in oil products – the annual report of importing Iraq 2018, the Central Statistical Organization 2019 – and he imports energy worth 7 trillion Iraqi dinars – the 2019 budget Iraqi facts: Issue 4529 on 11/11/2019 – all of which can be produced in Iraq, as well as other resources such as agriculture, various industries, trade, tourism, etc.,

With no Sovereign Wealth Fund that provides additional imports and a portfolio to protect the future of generations, especially in times of crisis, Iraq today Asking for aid to pay the salaries of employees and retirees is that what enters the treasury is not equal to a quarter of what Iraq needs to cover salaries only.

The financial budget for the year 2019 was allocated to the salaries of retired civilians and the military (9,316,652,417,000) Iraqi dinars, and the salaries of employees equal (43,404,629,267,000) Iraqi dinars For the year 2019, the amount is (52,721,281,684,000) Iraqi dinars, which means that Iraq needs monthly (4,393,440,140,000) Iraqi dinars, and if we take into consideration that the Iraqi dinar exchange is 1,200 dinars per dollar, it means that Iraq needs monthly to (3,660,000,000) approximately one dollar, while the GDP of Iraq is approximately (1,100,000,000) dollars for the month of March and (1,200,000,000) dollars approximately for the coming months, as Iraq needs (2.5) billion dollars approximately per month to cover monthly salary expenses only, this is regardless of other needs,

And to address This catastrophic failure began to raise some voices in order to reduce the Iraqi dinar exchange rate against the US dollar in order to increase the budget number and reduce the deficit in it, and I find it necessary to clarify some of the terms, so the reader may be surprised by the ignorance of many of those who speak in this field, and perhaps they are among those in important positions of responsibility.

(1) Floating Exchange Rate:

A floating currency is the rate of currency that has floated so that it has become fully liberalized, so the government or the central bank does not interfere in determining it directly, but it is automatically generated in the currency market through the Supply And Demand mechanism that allows By setting the exchange rate of the national currency against foreign currencies, this term corresponds to the fixed price of the currency exchange

(2) Fixed Exchange Rate:

A specific price will be set against a major global currency (usually the US dollar, but also other major currencies such as the euro, yen, or basket of currencies), in order to maintain On the local exchange rate, the central bank buys and sells its own currency on the foreign exchange market for the currency in which it is linked.

(3) Devaluation:

is the devaluation of the official exchange rate of this currency against an international reference currency (the US dollar or the euro, for example), so that the number of units of foreign currency that can be obtained against one unit of the national currency is low, and it is correct to talk about devaluation when it is The exchange rate is subject to the direct management of the government or the central bank, which determines this price through a government decision,

(4) and according to the same logic, it is possible to talk about raising the price of the currency Revaluation in exchange for reducing it, and this is when the exchange rate is subject to the direct management of the government or the central bank as well, and we note that the reduction The price of the currency and its elevation are within one framework which is the fixed exchange of the currency,

(5) but when the exchange rate is subject to the forces of supply and demand (floating the currency) and there is a decline in the value of this currency, depreciation of the currency, the decline is an automatic result of the free interaction between supply and demand in the foreign exchange market without interference Direct from the government or the central bank, according to For the same logic, we can talk about the rise in the value of the currency Appreciation versus its decline, and we note that the rise and fall of the currency price within the currency float.

(6) Since Iraq works within the fixed fixed rate system, we can talk about reducing and raising the exchange rate of the currency, and here I do not want to differentiate between the two systems, each of them has its conditions despite the market economy and its idea that the state should not interfere in economic activities and let the market control itself

It operates a system of floating the currency and its price depends on the iron principle of supply and demand, but the actual conditions of Iraq do not allow for reasons that are too long to be explained.

Countries with a fixed exchange rate resort to reducing the currency exchange rate for economic reasons to improve their balance of trade mainly due to an increase in domestic production versus the importer. The currency reduction makes the difference between the outside and the inside and reduces the importer in front of the exporter, and this assumes that there is internal production It covers the local need and wants to preserve it and export it abroad, but in the Iraqi case, unfortunately, there is no industry, no agriculture, no internal production, it covers the local need as well as being an exporter, as Iraq has nothing to export other than Crude Oil, and I speak here As for the reality of what is there and not what I am calling for, the total imports for the year 2018 for commodities and petroleum products amounted to (37) billion dollars, equivalent to (43.8) trillion Iraqi dinars, and the total imports for the year 2018 for the non-oil commodities (34.1 dollars), i.e. Equivalent (40.5) One trillion Iraqi dinars, and

(7) Iraq has no need to reduce the exchange rate, but it is sufficient for it to prevent the import of any material that can be dispensed with.

(8) BIG ONE …. PAY ATTENTION TO THIS ONE!!!

As for the real effect of the devaluation, it is the direct punishment for the Iraqi people, if we know that 6 million Iraqis receive a salary or aid from the Iraqi government and the number of individuals The Iraqi family is 5 people, we are talking about about 30 million Iraqis who live on what they receive from salaries or aid from the Iraqi government, all of these will be affected by this procedure, because inflation occurs.

(9) Inflation in prices is due to the low purchasing power of the Iraqi dinar, so the family that could have lived in a million dinars An Iraqi after the currency devaluation has become worth 500 thousand dinars, and if she receives a number that is a million, therefore she will live in great distress due to this reduction,

(10) the other affected are the owners of internal debts in the local currency, which amount to about 40 trillion dinars, which represent treasury transfers and debits with banks The government and the central bank for companies, contractors, and merchants, and if they are a number, it will remain that the Iraqi government owes them to 40 trillion, but after the devaluation they will owe 20 trillion on the assumption that it has been cut in half.

(11) As for the external debtor, it remains the same because in foreign currency the dollar or the like.

Another issue remains here is the confidence of investors and companies in the currency after the devaluation is much less because the stability of the currency is one of the factors that encourage investment and entry in projects as well as problems related to economic feasibility after the devaluation, which is the basis of the intervention of the government or the central bank in fixing the exchange rate or only for work The principle of floating currency from the beginning.

(12) ANOTHER “BIG ONE”

Hence, we believe that those who seek to actually depreciate the currency are punishing the Iraqi people because of the wrong policies and economic failure that brought the country to this situation, as the people in this bear the mistakes of politicians and are punished instead of them.

The Central Bank of Iraq management recently decided to stop the auction of foreign currencies

The Independent / – An informed source confirmed that the Central Bank of Iraq management recently decided to stop the auction of foreign currencies after the Iraqi economy was subjected to severe setbacks due to the Corona pandemic and the drop in oil prices to record levels, and the Central Bank followed a failed monetary policy.

The source, who spoke on condition of anonymity, told Al-Mustaqila that the governor of the central bank has been subjected to great pressure in the past few days by many political blocs, the media and economists because of his unjustified insistence to proceed with the foreign currency auction window despite all the losses and risks incurred by the economy Iraqi.

The data published on the website of the Central Bank indicates that the last date for which a currency auction was held was on Thursday, 21/5/2020, where more than $ 180 million was purchased with the participation of more than 30 banks at the auction.

The Central Bank of Iraq renewed its proposal that the Finance Ministry take over the sale of the dollar

{Baghdad: Al Furat News} The Central Bank of Iraq renewed its proposal that the Finance Ministry take over the sale of the dollar to the market directly for exchange in Iraqi dinars to cover budget expenditures without the central bank’s mediation.

The Central Bank attributed its proposal in its letter to the three presidencies, {Euphrates News Agency} obtained a copy of it until it “devotes itself to carrying out its tasks, which are numerous and important for financial stability and economic stimulus, and in order to get the bank out of the confusion that this issue causes.”

It is said that suspicions of corruption are continuously raised on the auction sale of the currency of the Central Bank of Iraq , most recently its support for Arhab.anthy

Saleh assures the Minister of Finance of the need to resolve the files between Baghdad and Erbil in accordance with the constitution

Baghdad today – President of the Republic Barham Salih affirmed the necessity of resolving the differences between Baghdad and Erbil, according to the constitution, while pointing out the need for appropriate reforms and combating corruption.

The Office of the Presidency of the Republic said in a statement received (Baghdad today), that “Saleh received Finance Minister Ali Abdul Amir Allawi at the Peace Palace in Baghdad.”

Saleh stressed, according to the statement, “the necessity of undertaking appropriate reforms and combating corruption, working to rationalize government spending and preserve public money, and to develop and diversify the sources of the economy while the country faces the emerging Corona epidemic.”

He continued that “economic remedies to get out of the current conditions should not affect the low-income classes, employees and retirees and their life obligations.”

The statement added that “it was emphasized that the outstanding issues between the Federal Government and the Kurdistan Regional Government should be resolved in accordance with the constitution and legal frameworks in a manner that preserves the rights of all citizens.”

The meeting covered, according to the statement, “discussing the necessary means to support Iraq to face the current financial crisis and the plans and measures required to overcome it, and the importance of unifying efforts and solidarity among all to reduce the deficit in the public budget in order to achieve social justice and economic stability for all Iraqis.”

In turn, the Minister of Finance reviewed “the procedures followed by the ministry in dealing with economic and financial conditions, and the synergy required by the current circumstance to combine efforts to overcome the current stage and its implications for public life.”

Charles Couch ~ They say it as plain as day to stop the currency auctions and changing the dinar exchange rate!!

The information / Baghdad .. On Wednesday, a group of deputies presented a set of proposals to the government aimed at filling the deficit in the budget of 2020 and facing the financial crisis caused by the collapse of global oil prices, the most important of which was stopping the currency auction and changing the dinar exchange rate.

The deputies said, in a joint statement, which was received / information / they are: Muzahim Al-Tamimi, Adnan Al-Zarfi, Qasim Al-Araji, Mohammed Al-Daraji, Mohammed Shiaa Al-Sudani, “Any government or parliamentary action towards reducing spending and austerity must be accompanied by a real approach by the government to combat Administrative and financial corruption and stopping the processes of wasting public money that have occurred previously or will happen through activating the role of the oversight bodies and following up issues raised by members of the House of Representatives and the media, specifically strengthened with priorities, documents and documents, and that there are periodic clarifications on what these measures are from the government and judicial authorities, and we are appealing to the judicial authority To be present in this field in a way that enhances the citizen’s confidence in the state and its authorities in fighting corruption. ”

They suggested “stopping work in the outlets of selling the currency with preparing instructions whereby all importers are required to submit lists that include imported goods for the purpose of customs accounting in the General Authority for Customs and Taxes before transferring money and notify the Central Bank of accounting according to official correspondence accompanied by customs bills and taxes, and change the dinar exchange gradually in a way that does not affect the The citizen and to guarantee the provision of cash that the state needs. ”

They called for a “review of the import approach and specifying possible goods and products to issue a decision banning their import to allow government companies in the Ministry of Industry, the private sector and the mixed sector to qualify their factories and produce these goods to create jobs and maintain hard currency instead of taking them out of the country.”

They stressed the need to “take adequate and rapid measures to control the border outlets and not to allow any unofficial port and to assign officials at a high level of integrity and courage able to control these borders and implement the laws related to customs tariffs and the protection of the national product and prevent importation and the application of the agricultural calendar, and obligating mobile phone companies to pay Fines, entitlements and taxes immediately with a legal technical review of the contracts of these companies in a way that guarantees the national interest with the activation of the fourth license and submitting it to the public through the competent ministry.

They demanded to “activate the tax system and reconsider the tax laws in a manner that allows the development of this sector and what it represents of important revenue for the state, and to reactivate the initiative of the Central Bank to allocate funds for loans to the industrial, agricultural and real estate bank to encourage the private sector to borrow and implement projects that create true development that Loans and restrictions related to granting loans are eased, as well as allocating the necessary funds for lending to small and medium-sized youth projects in order to generate job opportunities and create small projects that could be a source of livelihood for young people at the present time. Its impact on the citizen’s living conditions and needs. ”

They considered that “these and other proposals that would provide funds to bridge the deficit on the one hand, and we see that these amounts are directed towards supporting the social protection network, the ration card, medicines, and water sterilization, while supporting the educational and educational process and securing all its needs.” 25 h finished

Iraq has the right to recover smuggled money outside the country

Al-Tamimi said in a statement received by “Gilgamesh Press”, that the ” International Anti-Corruption Agreement of 2005 signed by Iraq 2007 allows Iraq to request the United Nations to recover the smuggled money as money laundering and corruption is financial.”
He added that “according to Article 50 of the Charter of the United Nations, states that fight terrorist organizations under Chapter Seven of the Charter of the United Nations may request economic assistance from the United Nations, and it is known that ISIS was placed under Chapter VII under UN Security Council Resolution 2170 of 2014.”

He continued, “Various countries have announced their willingness to provide economic assistance to Iraq, including Britain, so Iraq can request assistance from the international community, the United Nations, to rebuild liberated cities, face the consequences of the war against terrorism, according to the foregoing, and recover the smuggled money estimated at $ 500 billion.”

He noted that “according to Article 27 of the 2008 Iraqi-American Strategic Agreement, Iraq can request economic assistance from America, as this article required.”
He pointed out that “the current situation and the lack of health facilities to face the Corona pandemic and the decline in oil prices, Iraq had to move in this direction.”